Real Estate Terms Glossary
What is Fair Market Value?
We can define fair market value as the price that a knowledgeable and willing buyer, such as a home buyer, will pay to a willing and unrelated seller. Note that fair market value is pretty common in real estate matters.
Fair market value, also known as FMV, indicates the price at which your home would sell under normal market conditions. And the concept of FMV exists within a specific time period for the property transaction to occur.
Examples of Fair Market Value
- Example 1: Open market price
Here’s Investopedia’s definition of Fair Market Value .